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    Managerial Area

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    Asta Kinan Prayoga
    The document discusses organizational culture and the external environment that organizations operate within. It describes different views of management and how managers can be constrained or empowered by organizational culture and external factors like the economy. The document also examines globalization and how organizations manage relationships with stakeholders in their external environment.

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    Managerial Area

    Uploaded by

    Asta Kinan Prayoga
    24 views48 pages
    The document discusses organizational culture and the external environment that organizations operate within. It describes different views of management and how managers can be constrained or empowered by organizational culture and external factors like the economy. The document also examines globalization and how organizations manage relationships with stakeholders in their external environment.

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    Kuliah 2 Manajeman Industri

    Original Title

    2. Managerial Area

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    The document discusses organizational culture and the external environment that organizations operate within. It describes different views of management and how managers can be constrained or empowered by organizational culture and external factors like the economy. The document also examines globalization and how organizations manage relationships with stakeholders in their external environment.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    24 views48 pages

    Managerial Area

    Uploaded by

    Asta Kinan Prayoga
    The document discusses organizational culture and the external environment that organizations operate within. It describes different views of management and how managers can be constrained or empowered by organizational culture and external factors like the economy. The document also examines globalization and how organizations manage relationships with stakeholders in their external environment.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 48

    Managerial Area :

    Organizational Culture,
    Environment,Ethics, and
    Social Responsibility
    4 October 2012

    The Manager: Omnipotent or


    Symbolic?
    Omnipotent View of Management
    Managers are directly responsible for an organizations success or
    failure.
    The quality of the organization is determined by the quality of its
    managers.
    Managers are held accountable
    for an organizations performance
    yet it is difficult to attribute
    good or poor performance
    directly to their influence
    on the organization.

    The Manager: Omnipotent or


    Symbolic?
    Symbolic View of Management
    Much of an organizations success or failure is due to
    external forces outside of managers control.
    The ability of managers to affect outcomes is
    influenced and constrained by external factors.
    The economy, customers, governmental policies, competitors,
    industry conditions,
    technology, and the actions of
    previous managers

    Managers symbolize control and


    influence through their action.

    Exhibit 31 Parameters of Managerial Discretion

    The Organizations Culture


    Organizational Culture
    A system of shared meanings and common beliefs held
    by organizational members that determines, in a large
    degree, how they act towards each other.
    The way we do things around here.
    Values, symbols, rituals, myths, and practices

    Implications:
    Culture is a perception.
    Culture is shared.
    Culture is descriptive.

    Exhibit 32 Dimensions of Organizational Culture

    Exhibit 34 Strong versus Weak Organizational Cultures

    Benefits of a Strong Culture


    Creates a stronger employee commitment to
    the organization.
    Aids in the recruitment and socialization of
    new employees.
    Fosters higher organizational
    performance by instilling and
    promoting employee initiative.

    Exhibit 33 Contrasting Organizational Cultures

    Dimension

    Organization A

    Organization B

    Attention to Detail

    High

    Low

    Outcome Orientation

    Low

    High

    People Orientation

    Low

    High

    Team Orientation

    Low

    High

    Aggressiveness

    Low

    High

    Stability

    High

    Low

    Innovation and Risk Taking

    Low

    High

    Exhibit 35 How an Organizations Culture Is Established


    and Maintained

    2007 Prentice Hall, Inc. All rights reserved.

    310

    How Employees Learn


    Culture
    Stories
    Narratives of significant events or actions of people that convey the
    spirit of the organization

    Rituals
    Repetitive sequences of activities that express and reinforce the values
    of the organization

    Material Symbols
    Physical assets distinguishing the organization

    Language
    Acronyms and jargon of terms, phrases, and word meanings specific to
    an organization

    How Culture Affects


    Managers
    Cultural Constraints on Managers
    Whatever managerial actions the organization
    recognizes as proper or improper on its behalf
    Whatever organizational activities the organization
    values and encourages
    The overall strength or weakness of the organizational
    culture
    Simple rule for getting ahead in an organization:
    Find out what the organization rewards and do those things.

    Exhibit 36 Managerial Decisions Affected by Culture

    Planning
    The degree of risk that plans should contain
    Whether plans should be developed by individuals or teams
    The degree of environmental scanning in which management
    will engage
    Organizing
    How much autonomy should be designed into employees jobs
    Whether tasks should be done by individuals or in teams
    The degree to which department managers interact with each
    other

    Exhibit 36 Managerial Decisions Affected by Culture (contd)

    Leading
    The degree to which managers are concerned with increasing
    employee job satisfaction
    What leadership styles are appropriate
    Whether all disagreementseven constructive onesshould
    be eliminated
    Controlling
    Whether to impose external controls or to allow employees to
    control their own actions
    What criteria should be emphasized in employee performance
    evaluations
    What repercussions will occur from exceeding ones budget

    Organization Culture Issues


    Creating an Ethical
    Culture
    High in risk tolerance
    Low to moderate
    aggressiveness
    Focus on means as
    well as outcomes

    Creating an Innovative
    Culture
    Challenge and
    involvement
    Freedom
    Trust and openness
    Idea time
    Playfulness/humor
    Conflict resolution
    Debates
    Risk-taking

    Organization Culture Issues


    (contd)
    Creating a Customer-Responsive Culture
    Hiring the right type of employees (ones with a strong interest
    in serving customers)
    Having few rigid rules, procedures, and regulations
    Using widespread empowerment of employees
    Having good listening skills in relating to customers messages
    Providing role clarity to employees to reduce ambiguity and
    conflict and increase job satisfaction
    Having conscientious, caring employees willing to take
    initiative

    Spirituality and Organizational


    Culture
    Workplace Spirituality
    The recognition that people have an inner life that
    nourishes and is nourished by meaningful work that takes
    place in the context of community.
    Characteristics of a Spiritual Organization
    Strong sense of purpose
    Focus on individual development
    Trust and openness
    Employee empowerment
    Toleration of employees expression

    Benefits of Spirituality

    Improved employee productivity


    Reduction of employee turnover
    Stronger organizational performance
    Increased creativity
    Increased employee satisfaction
    Increased team performance
    Increased organizational performance

    Exhibit 31 Parameters of Managerial Discretion

    Defining the External


    Environment
    External Environment
    Those factors and forces outside the organization that
    affect the organizations performance.

    Components of the External Environment


    Specific environment: external forces that have a
    direct and immediate impact on the organization.
    General environment: broad economic, sociocultural, political/legal, demographic, technological,
    and global conditions that may affect the organization.

    Exhibit 39 The External Environment

    Stakeholder Relationships
    Stakeholders
    Any constituencies in the organizations environment that are
    affected by the organizations decisions and actions

    Why Manage Stakeholder Relationships?


    It can lead to improved organizational performance.
    Its the right thing to do given the interdependence of the
    organization and its external stakeholders.

    Exhibit 312 Organizational Stakeholders

    Managing Stakeholder
    Relationships
    1. Identify the organizations external
    stakeholders.
    2. Determine the particular interests and
    concerns of the external stakeholders.
    3. Decide how critical each external
    stakeholder is to the organization.
    4. Determine how to manage each individual
    external stakeholder relationship.

    How the Environment Affects


    Managers
    Environmental Uncertainty
    The extent to which managers have knowledge of and
    are able to predict change their organizations external
    environment is affected by:
    Complexity of the environment: the number of
    components in an organizations external
    environment.
    Degree of change in environmental
    components: how dynamic or stable the external
    environment is.

    Exhibit 311 Environmental Uncertainty Matrix

    The Global Marketplace


    Opportunities and Challenges
    Coping with the sudden appearance of new
    competitors
    Acknowledging cultural, political, and economic
    differences
    Dealing with increased uncertainty, fear, and
    anxiety
    Adapting to changes in the global environment
    Avoiding parochialism

    Whats Your Global


    Perspective?
    Parochialism
    Is viewing the world solely through its own eyes
    and perspectives.
    Is not recognizing that others have different ways
    of living and working.
    Is a significant obstacle for managers working in a
    global business world.
    Is falling into the trap of ignoring others values
    and customs and rigidly applying an attitude of
    ours is better than theirs to foreign cultures.

    Adopting a Global
    Perspective
    Ethnocentric Attitude
    The parochialistic belief that the best work approaches
    and practices are those of the home country.
    Polycentric Attitude
    The view that the managers in the host country know
    the best work approaches and practices for running
    their business.
    Geocentric Attitude
    A world-oriented view that focuses on using the best
    approaches and people from around the globe.

    Exhibit 41 Key Information About Three Global Attitudes

    Regional Trading
    Agreements
    The European Union (EU)
    A unified economic and trade entity
    Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg,
    the Netherlands, Portugal, Spain, the United Kingdom, Germany,
    Austria, Finland, and Sweden

    Economic and monetary union (Euro)


    North American Free Trade Agreement (NAFTA)
    Eliminated barriers to free trade (tariffs, import
    licensing requirements, and customs user fees)
    United States, Canada, and Mexico

    Exhibit 43 European Union Countries

    Regional Trading Agreements


    (contd)
    U.S.-Central America Free Trade Agreement
    (CAFTA)
    Free Trade Area of the Americas
    Southern Cone Common Market (Mercosur)
    Association of Southeast Asian Nations (ASEAN)
    Trading alliance of 10 Southeast Asian nations

    African Union
    South Asian Association for Regional Cooperation
    (SARRC)

    Exhibit 44 ASEAN Members

    Source: Based on J. McClenahen and T. Clark,


    ASEAN at Work, IW. May 19, 1997, p. 42.

    The World Trade Organization


    (WTO)
    Evolved from the General Agreement on
    Tariffs and Trade (GATT) in 1995.
    Functions as the only global organization
    dealing with the rules of trade among nations.
    Has 149 member nations and 32 observer
    governments.
    Monitors and promotes world trade.

    Different Types of International


    Organizations
    Multinational Corporation (MNC)
    Maintains operations in multiple countries.

    Multidomestic Corporation
    Is an MNC that decentralizes management and
    other decisions to the local country.

    Global Company
    Is an MNC that centralizes its management and
    other decisions in the home country.

    Different Types of International


    Organizations (contd)
    Transnational Corporation (Borderless
    Organization)
    Is an MNC that has eliminated structural divisions
    that impose artificial geographic barriers and is
    organized along business lines that reflect a
    geocentric attitude.

    Born Globals/International New Ventures (INVs)


    Commit resources upfront (material, people,
    financing) to doing business in more than one
    country.

    Exhibit 45 How Organizations Go Global

    Other Forms of Globalization


    Strategic Alliances

    Partnerships between and organization and a foreign company in


    which both share resources and knowledge in developing new
    products or building new production facilities.

    Joint Venture

    A specific type of strategic alliance in which the partners agree to


    form a separate, independent organization for some business
    purpose.

    Foreign Subsidiary

    Directly investing in a foreign country by setting up a separate


    and independent production facility or office.

    Managing in A Global
    Environment
    The Legal Environment
    Stability or instability of legal and political
    systems
    Legal procedures are established and followed
    Fair and honest elections held on a regular basis

    Differences in the laws of various nations


    Effects on business activities
    Effects on delivery of products and services

    The Economic Environment


    Economic Systems
    Market economy

    An economy in which resources are primarily owned and


    controlled by the private sector.

    Command economy

    An economy in which all economic decisions are planned by a


    central government.

    Monetary and Financial Factors


    Currency exchange rates
    Inflation rates
    Diverse tax policies

    The Cultural Environment


    National Culture
    Is the values and attitudes shared by individuals
    from a specific country that shape their
    behavior and their beliefs about what is
    important.
    May have more influence on an organization
    than the organization culture.

    Hofstedes Framework for Assessing


    Cultures

    Individualism
    Individualism
    versus
    versus
    Collectivism
    Collectivism
    Long-Term
    Long-Term
    versus
    versus
    Short-Term
    Short-Term
    Orientation
    Orientation

    Achievement
    Achievement
    versus
    versus
    Nurturing
    Nurturing

    Power
    Power
    Distance
    Distance

    Culture
    Culture

    Uncertainty
    Uncertainty
    Avoidance
    Avoidance

    Exhibit 45 Examples of Hofstedes Cultural Dimensions

    Exhibit 48 GLOBE Highlights

    Source: M. Javidan and R. J. House, Cultural Acumen for the Global Manager: Lessons from Project GLOBE,
    Organizational Dynamics, Spring 2001, pp. 289305. Copyright 2001. Reprinted with permission from Elsevier.

    Global Management in Todays


    World
    Challenges
    Openness associated with globalization
    Significant cultural differences (e.g., Americanization)
    Adjusting leadership styles and management
    approaches

    Risks
    Loss of investments in unstable countries
    Increased terrorism
    Economic interdependence

    Any Questions

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